More Information On Obama’s Financial Stability Plan

Here is what the site shows on Obama’s Home Affordable Refinance “Please be patient Lenders and servicers are just getting the detailed program requirements and it may take time before they are ready to accept applications.”  Here is more information on this http://www.financialstability.gov/makinghomeaffordable/ 

 

Here are the “Home Affordable Modification Program Guidelines.”  Here is the link http://www.treas.gov/press/releases/reports/modification_program_guidelines.pdf 

 

This is some very interesting information on both of the programs.  Here is a “Fact Sheet” that summaries both programs. http://www.treas.gov/press/releases/reports/housing_fact_sheet.pdf 

 

Here is probably the most important part:

 

  • Focusing on Homeowners At Risk: Homeowners at risk, such as those suffering serious hardships, decreases in income, increases in expenses, payment “shock,” high combined mortgage debt compared to income, who are “underwater” (with a combined mortgage balance higher than the current market value of the house), or who show other indications of being at risk of default may be eligible for a loan modification. Eligibility for the program will sunset at the end of three years.

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  • Reaching Homeowners Before They Have Missed Payments: Delinquency will not be a requirement for eligibility. Rather, because loan modifications are more likely to succeed if they are made before a borrower misses a payment, modifications for households at risk of imminent default despite being current on their mortgage payments are eligible to participate, in addition to those who have fallen behind.